Index Revulsion

By -

It’ll be interesting to see on Sunday afternoon, when the Globex opens, what the news about tapering plans will bring. I guess, deep down, everyone with a triple-digit IQ recognizes that any tapering will be swiftly and violently aborted if the market slips even 5% from lifetime highs. But, hey, we got get a little selling for a few days, so it could be fun!

I must say, the big indexes are looking dreadfully weary, particularly when you examine them with their overbought/oversold indicators breaking down. Here’s the Dow Jones Composite.

slopechart COMP

The small cap-based Russell 2000 (which has been range-bound literally all year long):

slopechart RUT

And, finally the S&P 500 (which is deliciously close to a trendline break):

slopechart SPX

Incidentally, I just read a fascinating little article about the nature of money I’d like to recommend you read. You can do so here. It reminds me precisely of the philosopher Alan Watts’ own lecture about money.